Castlégar News February 7, 1990 Group slams fed finances OTTAWA (CP) — The govern- ment could have cut the deficit by more than half if it had it trimmed $1 in spending for every $1 raised in higher taxes since 1985, says the Canadian Federation of Independent Business. “They have no one to blame but Ives" for budget Catherine Swift, chief economist for the federation, said. “They could have got things in order — they said they were going to back in 1984 and, as we all know, they’ve done nothing of the sort.'’ The federation, representing 85,000 small and medium firms across Canada, is the latest group to present a public brief on the next budget to Finance Minister Michael Wilson. Swift said the federal government could have slashed the annual bud- get deficit to between $12 billion and $13 billion for the next fiscal year if it had ‘cut spending with the same enthusiasm it taxes. Instead, the. next budget will probably leave the shortfall between what the government spends and what it gets in revenues at $32.5 billion for the year ending March 31, 1991 showed for raising _ Swift also said Wilson is using high interest rates as scapegoat, blaming them for thé rising deficit. The government estimates it will spend $39.4 billion on interest this fiscal year out of total spending of $142.9 billion But Swift said the government has left itself over-exposed to high rates by not cutting spending The risk of -rising rates ‘‘is something that business people have to live- with. If you .put-yourself in. the position that you are so vul- nerable to interest rates, your debt numbers go absolutely crazy. The federation saved its toughest criticism for the proposed goods and services tax, which it strongly op- poses. The pre-budget brief urged Wil- son to start again and work out a simpler plan, saying 68 per cent of 1,500 peple surveyed by Angus Reid in December opposed the seven per cent tax. Calling the proposed tax ‘‘uncon- scionable,’’ the brief said the feder- ation conservatively estimates the cost to small business of implemen- ting the complex tax at $1.2 billion to $2 billion a year. Wilson is expected to present his budget by the end of February. Several groups have already urged him to slash several billion dollars in spending. But Swift said it would be irres- ponsible to impose draconian cuts when the economy is slowing sharp- ly. The federation backs a proposal by the goVernment's own research group, the Economic Council of Canada, to freeze spending for two years on subsidies to business, transfer payments to provinces and the hiring of public servants. That would cut the deficit by about $3 billion. The federation rejected _one fee i from the Council — to stop increasing family allowance payments to keep up with inflation, The measure would hurt low-income people and ‘save only $120 million in the first year, it said. — WANTED — CLEAN COTTON RAGS Castle Sar News 197 Columbia Ave., —— YOU USE CASTLEGAR NEWS CLASSIFIED CALL 365-2212 SAVE A FISTFUL OF DOLLARS WHEN m8 BUSINESS DIRECTORY TELEPHONE 365-5210 New y oPy h for the Castl y will be March. an ind New: pted up to 5 p.m. Tues., Feb, 27 for the south @ a Brian L. Brown CERTIFIED GENERAL ACCOUNTANT 270 Columbia Avenue may NEW YORK (AP) — Would you really like to see zero in- flation? A lot of people would, in- cluding Alan Greenspan, chair- man of the U.S. Federal Reserve Board, and John Crow, gover- nor of the Bank of Canada. Also of that mind are some academic theoreticians, lots of business people and some in the financial community, where in- flation or its threat is considered as enemy to securities. Many ordinary folks might like it too. Retired people enjoy knowing their pensions won't be eroded. Savers want an assur- ance that their money won't diminish in buying power. Work- ers want pay raises to mean something. Many people would like to see inflation disappear simply be- cause they have come to view it as deceptive and destructive. In all, inflation is about the most popular enemy in econ- omics. Yet, in the past 60 years inflation generally has been ac- companied by economic growth, while its absence has been asso- ciated with recession or depres- sion. One rap against inflation is that high or rising inflation is often a prelude to recession — even a cause, and certainly a re- flection of unsustainable growth Only in 1936 did U.S. inflation average exactly zero for the year. That was in the Great Depres- sion —but it was one of the better Depression years. Gross Zero inflation economy slow national product grew, only to fall again later. In most of the Great Depres- sion, there was no inflation — in fact, deflation ran wild. The worst of it was in 1932, when prices dropped 11,5 per cent, but deflation was evident every year from 1930 through 1934, and again in 1938 ‘and 1939, In 1949, prices fell again, by 0.4 per.cent, and while the econ- omy didn’t shrink it also failed to grow Since then there has always been at least one-per-cent an- nual inflation in the U.S. It is hard to dispute the empirical evidence that the pur- suit of zero inflation may be hazardous. Theory bolsters the conten- tion. For example, proponents and opponents of the zero-in- flation goal agree that reducing inflation slows economic expan- sion But an induced slowdown, im- plemented by restraining money supply and keeping interest rates high, is perilous. At best, it is probably guesswork as to when to apply or relileve pres- sure The central on, statistical such factors as production, sales, earnings and employ bank must rely measurement of Castlegar © 365-2151 Gordon A. Read & Co. Certified General Accountant Office 368-6471 Residence 365-2339 1250 Bay Ave., Trail OR STIFF NECK? Call 365-5527 for appointment HAN’S ACUPUNCTURE 2505 Columbia Avenve BUY or SELL by AUCTION * Estotes * Consigy USSELL UCTION Carpet Cleaning OPEN MON.-SAT. 9-5 2067-34 Thums 399-4793 CLEAN-SCENE) ARPET, CLEANERS) * Most Advanced System Gets more deep down soil than ther cleaning method * olstery Cleaning Too = SATEFACTION GUARANTEED — thy not Call Us Today! FREE ESTIMATES PHONE 365-6969 Charter Buses and most of these measurements provide evidence after the fact When they reveal their news, it is already too late. To seek zero inflation, therefore, is to risk recession Valhalla map sparks study VANCOUVER (CP) — Park and wilderness areas in British Columbia could more than double in size without causing long-term harm to the province's forest industry, an independent study concludes. The year-long study says that if more than 100 new wilderness areas were created the amount of wood cut annually by the forest industry would drop by only 3.52 per cent Under the worst-case scenario, if industry and government made no attempts to offset that loss, 2,554 direct forestry jobs would be lost and $52.9 million in annual govern- ment revenues would disappear, says the study, conducted by resear chers at Simon Fraser University. With product sales of $11.5 billion in 1987, forestry is the largest industry in British Columbia, acc- ounting for 82,500 direct jobs The report, which uses data from the Ministry of Forests and key forest. companies, says increased tree planting and secondary manu facturing of Jumber would offset losses due to wilderness designa tion 4 With good faith and commitment on both sides, the province could “‘get the best of both worlds — wil- derness protection and a healthy forest industry,’ says Michael M'Gonigle, study supervisor and professor of natural resources man- agement at Simon Fraser University in suburban Burnaby : Copies of the 136-page report were scheduled to be released to the Forest Ministry, the forest industry and environmental groups M’Gonigle and several. graduate students began the study a year ago after the release of. a controversial map by the Valhalla Wilderness Society The map identified all key pro- vincial wilderness areas that en- vironmental groupswant barred from logging = When released, the Council of Forest Industries said it was skep. tical of Valhalla’s view, labelling it a wish list The council said the society's proposals -would reduce the forest base by 10 per cent, cost 8,500 direct forestry jobs and jeopardize another 17,000 indirect jobs. The Simon Fraser University stu- dy disagrees, saying those figures are inflated. British Columbia's for- est industry could adjust, it says. DEWDNEY TRAIL STAGES ‘Charter for groups Anytime, Anywhere!” 1355 Bay Ave., Trail 368-5555 _ __ or call toll free: 1-800-332-0282 | Computers _| HoR4ON COMPUTERS AND ACCESSORIES GRANT OF WOLF nant ge 365-3760 KOOTENAY INFORMATICS Now Hos a Full Line of LAZER XT AND LAZER 128s EX South Slocan Junction 359-7755 HEAVY DUTY CEMENT FINISHING CALL G. WOLF 352-2249 WEST K CONCRETE LTD. PIPELINE PITT ROAD CALL PLANT 693-2430 CASTLEGAR 365-2430 Plumbing & >> y? —EKDEEE SF SS —s Linnea ore £198) Vowerso! Pros Heating CASTLEGAR PLUMBING & HEATING For all your plumbing needs and supplies © FIXTURES * PARTS © SERVICE CALL 365-3388 TRAIL CUSTOMERS ONLY CALL 364-0343 CasNews columnist John Charters takes a look at the Rossland Light Opera Players ... . 87 Ethnic treat - Rustavia Company from Soviet Georgia performs at ~the Cominco Gym in Trail Feb. 13... Bé _LOTTERY NUMBERS The winning numbers in Saturday's Lotto 6/49 draw were 15, 21, 24, 27, 42 and 47. The bonus number’ was 36. The extra numbers are 18, 27, 93 and 98. The $1,000,000 winning number in Friday's Provincial lottery draw is 2135345. The winning numbers drawn Friday in the B.C. Keno lottery were 2, 4, 14, 15, 22, 28, 30 and 41. playoffs... BI Almost history The Castlegar Rebels are just about out of chances to make the unday — Vol. 43, No. 12 60 Conts AW yk Jar News CASTLEGAR, BRITISH COLUMBIA, SUNDAY, FEBRUARY 11, 1990 WEATHERCAST Today: Mostly cloudy with o few showers of rain or wet snow. Highs 4-6. Monday: A few sunny breaks Isolated snow flurries. A little cooler. Probability of precipitation is 60 per cent today and 40 per cent Monday 3 Sections (A, B & C) The Plumbing & Heating Centre * American Standard * Valley Fibreboth * Crane * Gulf Stream Spas Ie ndicote “Why didn’t you say you didn’t want gravy?” SANLAND CONTRACTING LTD. GENERAL CONTRACTOR 365-3033 ELECTRICAL CONTRACTOR IN THE CASE OF AN ELECTRICAL EMERGENCY, WEEKENDS OR EVENINGS CALL 365-3033, 365-2973 or 365-6250 SANLAND CONTRACTING LTD. Castlegar, B.C. | pave: 365-8073 7% - KENNEY DRYWALL Walls & Textured Ceilings 1° re FREE ESTIMATES Phone: 226-7883 D&M Painting & Insulation © Blown Insulation © Batts & Poly DUNCAN MORRISON 650-Sth Avenue 365-5255 poveEL A Better Way to Build e COMMERCIAL *¢ INDUSTRIAL * AGRICULTURAL For more information, call your Authorized Garco Builder Midwest Construction Services Ltd. fox 1633, Creston. 6.C, (604) 428-3332 Foot Care MODERN REFLEXOLOGY - AND FOOTCARE + =_ S$. Castlegar 365-5121 CASTLEGAR FUNERAL CHAPEL Dedicated to kindly thoughtful service COMPLETE FUNERAL SERVICE Cremation, Traditional Burial and Pre-Arrangement Plan Available Granite, Bronze Memorials Cremation Urns and Plaques PHONE 365-3222 _ * Electrical & G.E. Lighting Supplies 2317-6th Avenue, Castlegar Phone 365-7702 Home Repair |} Radiator Repair Bartle & Gibson DONE RIGHT @ FOR LESS © Renovations © Commercial Residential Mike’s Radiator Repair & Sales New Location 690 Rossland Ave., Trail Open 8:30 - 5 p.m. Monday-Friday 9:30. 2 Ledictbord Phone ‘364. 1606 After Hours Emergency or Pickup Call Perry, 364-1506; Tim 359-7951; Mike 359-7058 ; Lae LOCKSMITH Licenced and Bonded CALL 365-6562 RENTAL APPLIANCES & TV Rent to Own Washers, Dryers, VCRs, Williams Moving ieee & Storage cai! 365-3388 . 1008 Columbia Ave., Castlegar 2337-6th Avenue, Moving & Storage Castlegar Invite you to call them for a free moving estimate. Let our rgpresentative tell you about the many services which have made Williams the most respected name in the moving business Roofing Ph. 365-3326 Collect ROOF REPAIR © Quality Work * Exceptional Prices «FREE Eanmotes CALL JAMES 365-3282 Experienced Rooter Optometrist WU L Lee B.C. O.D. OPTOMETRIST 1012 - 4th St., Castlegar PHONE 365-3361 Tuesday to Friday 9.a.m. to 4:30 p.m. Saturday 9 a.m. to 12 Noon fh id ROOFING * Guaranteed Work © Fair Prices © 40 Yeors in Business ree Estimate "JAMES SWANSON AND SONS Ph. 367-7680 Septic Service Planning a Wedding? We Sell Distinctive Invitations, Napkins etc COME SEE US AT Castlegar News 197 Columbia Ave COLEMAN COUNTRY BOY SERVICE Sump & Septic Tank Pumping Phone 365-5013 3400-4th Avenue Castlegar Plumbing & Heating Built-in Vacuum Systems STARING AS Low ewes s SELKIRK HOME CARE SERVICE Easy SILVER CREST PLUMBING 713 Tamarak St., Castlegar Call 365-3044 55-5087 a eS ALL DRESSED UP . sthoo! ; Oise Watson, 9, gets ore Friday to participate in Robson of the French festival, Carnival. Kinnaird elementary also celebrated | the ‘annual event Thursday, photo page A8. CasNews photo by Ed Mills Celgar to fill shore By CasNews Staff Celgar Pulp Co. will fill in an area of the foreshore along the Columbia River in front of the Castlegar pulp mill to create as muchas four hectares (10’acres) of usable land as the com- pany continues site preparations for its proposed $630 million expansion of the mill. ‘The amount of tand the will create with the fill depends on where the construction camp for the expansion project is located, Celgar controller John Lebidoff said. Before that takes place though, Lebidoff said Celgar needs the area to reroute some piping at the mill. “*What we need to do is fill this area in so that we can re-route some of our piping during the Easter shutdown while the mill’s down for two weeks for other routine maintenance ac- tivities,’’ he said. Lebidoff said the company is not planning to construct any buildings onthe filled area_ waiting for final approval from the Ministry of Crown Lands from which Celgar leases the foreshore area. Lebidoff said the government has strict guidelines on how the foreshore area may be filled. “The government has extremely rigid guidelines on how the fill is to be placed,’ he said. ‘Everything has to be done in accordance with Ministry of Environment regulations.”” Lebidoff said Celgar has applied to purchase some of the Crown land. “We thought if we filled it, it would come in handy later for perhaps an access area or that type of thing.”” Celgar has received permission to fill the area from several government agencies, including the Coast Guard, and has received endorsement from Castlegar city council. However, as of last week the company was still CASTLEGAR-ROBSON FERRY Ombudsmanwill review move By SIMON BIRCH Editor Provincial ombudsman Stephen Owen will review information on the closure of the Castlegar-Robson ferry and the ferry’s removal from its mooring by the provincial gover- nment in January, deputy ombud- sman Brent Parfitt said Friday. The Robson-Raspberry Ferry Users Ad Hoc Committee is seeking the ombudsman’s help for the second time following a meeting last Sunday in Robson at which the committee vowed to continue the fight to restore the ferry service. “Yes, of course we will review it,"’ Parfitt told the Castlegar News. “Certainly in the pasi we’ve looked at this matter.”’ Parfitt said the ombudsman’s ability to review the matter “depends on how the decision was made’* to remove the ferry. “If it was a cabinet decision, we don’t have access to the documents,”’ he said. However, if the decision was made by the Highways Ministry bureaucracy or Highways Minister Rita Johnston, then the ombudsman is able to review the decision, Parfitt said. The government removed the ferry in the early morning hours of Jan. 24. The vessel will be refurbished at Shelter Bay near Revelstoke before bein gput into service at Arrow Park, replacing a ferry there which carries logging trucks acorss Upper Arrow Lake. The committee’s lawyer. Dalon, said Saturday the committee has not asked the ombudsman to Terry” review any of the questions the com- mittee has raised in its court battle to have the ferry service reinstated. Earlier in the week, Dalton said he hopes the B.C. Court of Appeal will hear the case close to the next provin- cial electon so that the issue will have the greatest political impact Dalton said the committee has asked Owen to consider if in fact there was an agreement between the government and the committee that the ferry should BF WOR10_the com- mittee for $1 and, if there Was an agreement, if that agreement has been breached He said the committee has also asked the ombudsman to investigate the removal of the ferry ‘‘in the darkness of the night,"’ to try to determine who gave the instructions continued on page A2 Talks may be delayed By CasNews Staff Arbitration_talks between Celgar Pulp Co. and Local 1 of the Pulp, Paper and Woodworkers of Canada to settle a company grievance against the union are expected to resume this week. Union first vice-president Mike Espenhain said Saturday the hearings are tenatively scheduled to resume Wednesday but may be delayed further as a result of a death in the family of Celgar’s lawyer. Celgar is claiming more than $600,000 in damages from the union in connection with a work stoppage at the Castlegar pulp mill in September 1988 when 200 union workers walked off the job over a dispute about seniority The union has been trying to show at the hearing that the company suf- fered no loss of production or profits during the three-day walkout because the mill was shut down at the time for maintenance. Espenhain said negotiators had been working towards a settlement of the dispute without further ar- bitration hearings but those talks have broken off because the two sides were too far apart “Specifically, the company was looking for some’ things ‘contrary to our labor agreement,” Espenhain said. ‘‘We didn’t want to give those away.”” He said he expects the hearings to take about another five days. Celgar officials could not be reached for comment Saturday but have declined to comment on the hearings in the past Mann pleads not guilty By CasNews Staff Fire chief Bob Mann entered a plea of not guilty Monday in Castlegar provincial court to one count of sexual assault, court records show His next court appearance is scheduled for March $ RCMP have not released details of the charge against Mann, who is being defended by Castlegar lawyer Ken Wyllie The court has imposed a ban on publication of any information which could identify the complainant Mann, 52, is Castlegar’s~second fult-time-paid fire chief. He took over the job in October 1982, replacing Dan Fitger who resigned in May 1982 after just 18 months on the job, blaming lack of cooperation and sup- port from city council and his volun- ter fire department Mann was honored~in~December 1989 with a 30-year federat exemplary medal for his long service as a firefighter village it wants to emulate. announcing that the 81-year-old definitely due to spiralling losses. February. to the west, new Red Dog mine imAlaska gone. But underneath the snowy ‘blanket, behind the Alpine facades that line the town’s platzl (small plaza), there's cynicism, bitterness and uncertainty. Cominco Ltd. dropped a bombshell last month, mine, the town's largest employer, More than 600 people were given two-week layoff notices with an additional 150 out of work by mid- Cominco’s smelter in. Trail, one mountain range now will get lead and zinc concentrate from foreign sources and, starting in July, Cominco’s Even if the mine, now tended by a skeleton staff of 60, reopens as Cominco promised, the shutdown is a taste of what the town can expect when the ore is The community of 6,700, nestled in the East Kootenay region between the Purcell and Rocky Mountains, owes its existence to the mine. It’s still largely a one-industry town. In the basement of local 641 of the United Steelworkers of America, idled mine workers slowly Sullivan lead-zince would close in- KIMBERLEY (CP) — The era when Cominco used to push em- ployees to run for city council is past, but Kimberley Mayor Jim Ogilvie says the mining firm still casts a giant shadow Once owned directly by Comin- co, Kimberley was incorporated in 1948, but for years afterward the company kept its hand in through the council, says Ogilvie, the major closed last ployer. It mayor for 17 years. “Although it's not a company town, it’s got a lot of the elements of a company town, except the citizens pay for everything."” Even today, Cominco remains a landholder month, lead-zinc mine was the major em- pumped about $36 million in wages directly into the drain a coffee urn, trading trade stories of enforced domesticity — who vacuumed; who cooked supper Cominco says it warned workers almost a year ago that rising production costs might jeopardize Sullivan's already-limited future. “It hasn't hit yet,”’ Mayor asks for help economy of the southeastern B.C community down Cominco cited and, until it its Sullivan off. couver, says a third-generation miner The 81-year-old mine was shut indefinitely low world zinc prices and high production costs More than 700 workers were laid “If you compare that to Van it would be like losing continued on poge A2 23 years, table." Kimberley faces uncertain future KIMBERLEY (CP) — With a blanket of fresh snow covering its many steeply pitched roofs, Kim- berley looks almost like the kind of Bavarian mountain whose grandfather started here in 1907. ‘I'm shocked “What upsets me more than anything is that after two-weeks-layoff notice just isn’t accep: He won't give his name, worried he might be labelled a troublemaker by” potential employers if Sullivan doesn't reopen Local 641 president Mike Park says he wouldn't be surprised if the mine reopened about theytime that negotiations begin for a new master contract in June The shutdown may be a way to soften them up last month workers must do,"! he says “Let's not pull any punches,”” who doesn’t want his name used lockout, pure and simple. Cominco’s office, is done up to resemble an Alpine chalet ministration manager Ron McLean rejects the charge the company is trying to get concessions from mine adds another miner “This is a few steps from the union hall, Inside, ad 1 don’t know that there’s anything they can or “We want 70-cent zinc and we continued on poge A2